May

The KOF Economic Barometer declines in May and now stands at 96.8 points. The barometer is thus now below its long-term average. The Swiss economy is thus likely to develop moderately over the next few months.

The Global Barometers fall for the second consecutive month, reflecting negative factors such as the war between Russia and Ukraine, the COVID-19 responses in China and the worldwide very high inflation. The Coincident Barometer remains below the historical mean of 100 points, while the Leading Barometer drops further from the mean, reflecting the increased risk of a more pronounced slowdown in several countries.

The KOF Business Situation Indicator for firms in Switzerland rose in April, reaching its highest level since recovering from the financial crisis in 2010/2011. As far as developments in the near future are concerned, however, companies are more cautious than they have been in recent months. The positive impact of the Swiss economy’s recovery from the pandemic is outweighing the adverse effects of the war in Ukraine.

The KOF Employment Indicator continues to rise and is at its highest level since it was first introduced in 1992. Its renewed increase is due in particular to the hospitality industry.